Oil and gas industry getting pressure to make fracking greener

A perfect storm is forming that could require oil and gas companies to recycle the wastewater that comes up from hydraulic frack jobs in Texas.

Environmentalists and even energy executives acknowledge the fact that consuming massive amounts of water in a drought is costly and hurts public perception. Meanwhile, seismologists say evidence continues to mount that there’s a strong link between injection wells and earthquakes.

The argument is getting louder and has culminated in two bills being considered in the Texas Legislature that could mandate recycling, changing how the industry operates. There would be a surge in work for water recovery and treatment firms, a savings of millions of gallons of water per well and, perhaps, fewer earthquakes.

But forcing companies to recycle water is costly, and there is opposition to the legislation from the energy industry.

Oklahoma City-based Devon Energy, which voluntarily recycles its frack water for the environmental benefits, pays up to 50 percent more to do so than if it were to use a traditional injection well for disposal, says spokesman Cindy Allen.

Devon recycled more than 700,000 gallons of water per day during the height of the Barnett Shale drilling in North Texas.

The average Barnett Shale well uses 5 million to 6 million gallons of freshwater, sand and other chemicals to fracture shale and release the natural gas trapped within it. A good percentage of that water comes back to the surface laced with chemicals and brine.

The technology exists to recycle it, but it’s not practical for all companies and all situations. Factors such as water quality, geology and economics all play a role in making recycling feasible, Allen says. In most cases, that water is injected into disposal wells thousands of feet below ground.

When that happens, the water can’t be recovered and is “permanently consumed,” says Luke Metzger, the director of Environment Texas.

The Texas Railroad Commission estimates that about 9.1 billion gallons of wastewater every month goes into disposal wells. Metzger called the industry’s use of injection wells the “Achilles’ heel in terms of public perception” and says he’s pushing for tougher recycling requirements.

Then, there’s the question of earthquakes.

Geoffrey Abers, associate director of the Seismology-Geology-Tectonophysics Lamont-Doherty Observatory of Columbia University, says the evidence is mounting that injection wells do induce earthquakes.

But scientists aren’t unanimous in their opinions on the subject. A report released this month by Durham University in the United Kingdom found no link between fracking and “felt earthquakes” based on more than 80 years of earthquake history in the United States.

Embracing it

Late last month, the Texas House Energy Resources Committee heard a pair of bills that would essentially require oil and gas companies to recycle frack water and prohibit the use of injection wells.

If approved by the Legislature and signed by Gov. Rick Perry, both bills would call on the Texas Railroad Commission, which regulates oil and gas drilling, to adopt the rules by Dec. 1.

The bills aren’t absolute, as House Bill 3537 says water will be treated “to the extent practical,” while House Bill 2992 says water may not be put in a disposal well “unless the fluid is incapable of being treated.”

At Breitling, Faulkner says recycling has benefits beyond just the improved public image.

The company uses a closed loop system that recycles the water on-site and then mixes it with freshwater for the next well. That means no additional transportation costs, less truck traffic and less freshwater purchased, Faulkner says.

“All those things in the long run will save you money,” he adds.

He recently spoke on the topic at a conference in Denver, explaining: “We are not required to do this. But we are doing it, though. Environmental stewardship is important to us.”

Breitling just started recycling last year, and Faulkner expects more companies will follow suit because of the drought concerns and earthquakes.

“I don’t think the industry at a huge level is doing it yet. I think they’re starting to embrace it,” Faulkner says.

Nicholas Sakelaris is a staff writer with the Dallas Business Journal, a sister publication.